Bajaj Auto Share Price Slumps Over 3%, Hits 52-Week Low – What’s Next?
Bajaj Auto’s share price continued its losing streak for the seventh consecutive trading session, declining over 3% on Tuesday and touching an intraday low of ₹7,475.70. This marks a sharp downturn for the two-wheeler giant, which has lost over 13% in the past week alone. The stock’s continued weakness raises concerns among investors, with analysts advising caution before making fresh entries.
Technical Analysis: Bearish Trend Prevails
Market experts suggest that Bajaj Auto’s stock remains under strong selling pressure. According to Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, any attempts at recovery are being met with selling pressure, further dragging the stock down.
“The momentum oscillators are in oversold territory, but there are no signs of a bullish reversal yet. One should wait for a base formation or a bullish candlestick pattern before considering new entries. The next support is at ₹7,050, while ₹8,000 acts as resistance,” said Bhosale.
Bajaj Auto opened at ₹7,652.10 per share on the NSE today and touched an intraday high of ₹7,680 before witnessing another round of selling pressure.
Why is Bajaj Auto Stock Falling?
Several factors have contributed to Bajaj Auto’s recent slump:
- Weak Domestic Sales: The company reported a 14% decline in domestic two-wheeler sales for February 2025, selling 1.46 lakh units compared to 1.71 lakh units in February 2024.
- Decline in Overall Domestic Sales: Despite a slight increase in commercial vehicle sales (up 3%), Bajaj Auto’s total domestic sales fell 11% to 1.83 lakh units.
- Surprising Sales Drop: Rakesh Sharma, Executive Director of Bajaj Auto, expressed concern over the decline, calling it “surprising” given that broader economic indicators remain robust. He attributed the drop to weak consumer sentiment rather than financing issues.
- Global Market Uncertainty: While two-wheeler exports increased by 23% to 1.53 lakh units, the decline in domestic demand continues to weigh heavily on the company’s financial performance.
- Technical Weakness: The stock has been facing resistance near ₹8,000, and analysts suggest that unless a strong reversal pattern emerges, the downtrend may continue.
What’s Next for Bajaj Auto?
Despite the current bearish trend, analysts believe that Bajaj Auto could witness a rebound in late March to early April as consumer sentiment improves. Additionally, if the company continues to see strong export growth, it could help cushion the impact of weak domestic demand.
For investors, it is crucial to keep an eye on the support level of ₹7,050. If the stock falls below this, it may trigger further downside. On the upside, a breakout above ₹8,000 could signal a trend reversal.
Bajaj Auto: Key Financial Ratios
To better understand Bajaj Auto’s financial position, here are some key financial ratios:
| Financial Metric | Value |
|---|---|
| Market Cap | ₹2.2 lakh crore |
| P/E Ratio | 24.5x |
| ROE (Return on Equity) | 18.2% |
| ROCE (Return on Capital Employed) | 21.5% |
| Debt-to-Equity Ratio | 0.02 |
| Dividend Yield | 3.1% |
Should You Buy, Hold, or Sell?
Given the current downtrend and lack of immediate bullish signals, experts advise investors to wait for stability before making fresh entries. The support level of ₹7,050 will be crucial in determining the next move. If Bajaj Auto manages to hold above this level and shows signs of recovery, it could present a good buying opportunity for long-term investors.
For now, traders should closely monitor market sentiment, sales figures, and global demand trends before making any major decisions regarding Bajaj Auto stock.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.